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American Equity exchanges some 5.25% convertibles, issues $52.2 million more of new series due 2029
By Jennifer Chiou
New York, Dec. 17 - American Equity Investment Life Holding Co. announced that it entered into privately negotiated agreements to issue new convertibles in exchange for roughly $56.2 million of its outstanding 5.25% contingent convertible senior notes due 2024.
The West Des Moines, Iowa-based insurance company said it will issue an equal amount of new 5.25% contingent convertible senior notes due 2029 for the existing notes.
In addition, American Equity privately placed an additional $52.2 million of the new notes.
Proceeds are earmarked for general corporate purposes, which may include, among other things, reduction of outstanding debt.
The new notes have substantially the same terms as the existing notes, other than:
• The conversion price of the new notes will be $9.69 per share;
• The cash dividend threshold amount of the new notes will be $0.08 per share annually;
• Holders of the new notes will have the right to put back the notes on Dec. 15 in 2014, 2019 and 2024; and
• The company will have the right to repurchase the new notes beginning Dec. 15, 2014.
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